Rate Cut

[Cortopassi]

But wait -- there was a rate cut?

Shouldn't stocks have gone up? Gold gone up? Bonds down? All are inverses of this.

This is why I hold the PP. Best prognosticators in the world probably couldn't call this, unless it is buy the rumor, sell the news. In which case, yet another reason for the PP because the rumor isn't always true.

[Xan]

Story I'm getting is that this rate cut had been priced in, as had some expectation for future rate cuts. Because Powell didn't signal that future rate cuts were in fact coming, the market was disappointed. Weird.

[pmward]

Nah, I pretty much knew we would sell off if we only got a 25bp cut. Especially if Powell talked tough after like he did. Remember markets are priced to expectations not reality. There is absolutely no room for logic or common sense in markets.

[Cortopassi]

This was on Zero Hedge, very appropriate

[ochotona]

The cartoon is precious.

This is on the front page of CNBC.com right now, I'm not joking:

"Economists who predicted the rate cut are now utterly confused about what the Fed does next"

[Cortopassi]

Well, that was a switcheroo. Gold and bonds soaring, stocks going to be down big two days in a row?!?

[pmward]

Yep, looks like I'm buying stocks tomorrow when I get paid and do my DCA, lol.

[Tyler]

The Fed droppin' those rates to get the economy bumpin' while investors study every move:

[ochotona]

My port is down -0.07% today.

[Cortopassi]

90 day and 1 year timeframes my PP is doing well. YTD is still ~4% lower than S&P. The smoothing function of the PP is nice and clear here.